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Housing Mortgage Vocab Advantages True or False

The down payment to purchase a home should

be

___ % of the purchase price.

What is

20?

The market value of houses tend to __________

over time.

What is appreciate?

The _________ (buyer or seller) pays for the closing

costs.

What is

the buyer?

True or False

Real estate agents earn a commission as a

percentage of the sale of a house

What is true?

Yes or No

When you have 100% equity in your home, are you

still paying a mortgage?

What is no?

You have complete ownership.

This is a mortgage where the interest

rates do not change during the term of

the loan.

What is

a fixed rate mortgage?

True or False

Paying extra on your mortgage will shorten the term of

the loan.

What is true?

Your monthly mortgage payment should be no more than ____% of your gross

monthly income.

What is 28?

In the early stages of a mortgage, most of the payment goes to the

interest or the principal balance?

What is interest?

Name three things you can do to lower your cost of buying a home after you

have decided upon a home to purchase.

What is get the lowest interest rate

on a mortgage, shorten the term of the loan, and make

a large down payment?

A legal document that transfers title of real

property.

What is a deed?

A financial claim on property.

What is a lien?

A written history of all transactions related to

the property.

What is an abstract?

The ownership of subsurface property.

What are mineral rights?

When the government takes private property for public use with just

compensation.

What is eminent domain?

Less restrictions on improvements to your

living space and property are advantages to

__________ (renting or buying) a home.

What is buying?

A smaller amount of cash upfront is an

advantage to __________ (renting or buying) a

home.

What is renting?

Tax deductions are associated with

________ (renting or buying) a home.

What is buying?

Increased mobility is an advantage associated with _________ (renting

or buying) a home.

What is renting?

Equity is an advantage to ________ (renting or buying) a

home.

What is buying a home?

The two basic types of mortgages are fixed rate

and adjustable rate.

What is true?

A lease is a written agreement that allows a tenant to use property,

provides specifics, and is binding.

What is true?

There are no counteroffers when making an offer to purchase a home.

What is false?

It is best to have just one real estate agent to represent the buyer

and the seller.

What is false?

There is a risk of lost equity when you do not pay your rent on time.

What is false?

The down payment on a home is

deducted from the price to determine the amount of your

mortgage.

What is true?